ACT 22-2012

Bona-fide residents of Puerto Rico that were not residents of Puerto Rico for the 6-year period preceding the enactment of the Act on January 12, 2012

100% tax exemption from Puerto Rico income taxes on all dividends;
100% tax exemption from Puerto Rico income taxes on all interest;
100% tax exemption from Puerto Rico income taxes on all short-term and long-term capital gains accrued after the individual becomes a bona-fide resident of Puerto Rico
Bona-fide residents of Puerto Rico are not subject to U.S. federal income taxes on income derived from sources within Puerto Rico.
U.S. citizens that are bona-fide residents of Puerto Rico benefiting from the Act will only be subject to federal income taxation on income derived from sources outside of Puerto Rico.

Obtain a Tax Exemption Decree
Generally, a bona-fide resident of Puerto Rico is a person who:
is present for at least 183 days during the taxable year in Puerto Rico;
does not have a tax home outside of P.R. during the taxable year; and
does not have a closer connection to the United States or a foreign country than to Puerto Rico.

The term of the decree will be until December 31, 2035.
The benefits granted will be constitutionallly secured during the term of the decree, irrespective of any changes in the applicable Puerto Rico tax laws.